Greene County Bancorp, Inc. - Reports Record Earnings for Fiscal Year Ended June 30, 2012

Greene County Bancorp, Inc. (the “Company”) (NASDAQ: GCBC), the holding
company for The Bank of Greene County and its subsidiary Greene County
Commercial Bank, today reported net income for the fiscal year and
quarter ended June 30, 2012.

Net income increased $539,000, or 10.2%, to $5.8 million, or $1.40 per
basic and $1.39 per diluted share, for the year ended June 30, 2012,
from net income of $5.3 million, or $1.28 per basic and $1.27 per
diluted share, for the year ended June 30, 2011, and net income
decreased $33,000, or 2.4%, to $1.3 million, or $0.32 per basic and
diluted share, for the quarter ended June 30, 2012 from $1.4 million, or
$0.33 per basic and diluted share, for the quarter ended June 30, 2011.

Donald E. Gibson, President & CEO stated: “I am very pleased to report
for the fourth consecutive fiscal year we have achieved record earnings.
In addition, all three of our primary lines of business - retail,
commercial and municipal banking - achieved record asset levels.”

Selected highlights for the fiscal year and quarter ended June 30, 2012
are as follows:

Net interest income increased $1.1 million to $20.8 million for the
year ended June 30, 2012 from $19.7 million for the year ended June
30, 2011, and increased $73,000 to $5.2 million for the quarter ended
June 30, 2012 from $5.1 million for the quarter ended June 30, 2011.
The increase resulted primarily from an increase in the average
balances of loans and securities, along with a decrease in rates paid
on deposit accounts when comparing the periods.

Net interest rate spread increased 2 basis points to 3.72% for the
year ended June 30, 2012 from 3.70% for the year ended June 30, 2011,
and decreased 11 basis points to 3.57% for the quarter ended June 30,
2012 from 3.68% for the quarter ended June 30, 2011. Net interest
margin decreased 1 basis point to 3.84% for the year ended June 30,
2012 from 3.85% for the year ended June 30, 2011, and decreased 15
basis points to 3.67% for the quarter ended June 30, 2012 compared to
3.82% for the quarter ended June 30, 2011. Despite the positive
effects on net interest income from increased volume and lower cost of
funds, declines in the yields on interest-earning assets resulted in
net interest spread and net interest margin being relatively flat when
comparing the years ended June 30, 2012 and 2011 respectively, and has
resulted in a decline in the net interest spread and net interest
margin when comparing the quarters ended June 30, 2012 and 2011,
respectively. Although the Company has benefited from re-pricing its
interest-bearing liabilities in the continuing historically low
interest rate environment, the Company’s average interest rates earned
on loans and investments have similarly continued to re-price into
lower yields.

The provision for loan losses totaled $1.8 million and $1.6 million
for the year ended June 30, 2012 and 2011, respectively, an increase
of $156,000, or 9.6%. The provision for loan losses totaled $347,000
and $449,000 for the quarters ended June 30, 2012 and 2011,
respectively. The allowance for loan losses totaled $6.2 million at
June 30, 2012 compared to $5.1 million at June 30, 2011. The level of
allowance for loan losses to total loans receivable increased to 1.86%
at June 30, 2012 from 1.66% at June 30, 2011.

Net charge-offs totaled $676,000 and $583,000 for the year ended June
30, 2012 and 2011, respectively, an increase of $93,000.

Nonperforming loans increased by $723,000, or 11.5%, to $7.0 million
at June 30, 2012 from $6.3 million at June 30, 2011. This growth has
resulted from adverse changes in the economy and increases in local
unemployment, which were compounded by the extended length of time
required to complete foreclosures in New York State.

Noninterest income increased $57,000 and $21,000 when comparing the
years and quarters ended June 30, 2012 and 2011, respectively.
Noninterest income totaled $4.9 million and $1.3 million for the year
and quarter ended June 30, 2012, respectively. The Company recorded a
net gain on sale of investments during the year ended June 30, 2012 of
$11,000, as compared to a net gain on sale of investments during the
year ended June 30, 2011 of $233,000. Additionally, the Company
recognized a write-down of an other-than-temporary impairment of
securities of $25,000 during the year and quarter ended June 30, 2012,
as compared to a write-down of $2,000 during the year and quarter
ended June 30, 2011. Excluding these items, noninterest income
increased $302,000 and $44,000 when comparing the years and quarters
ended June 30, 2012 and 2011, respectively. These increases resulted
primarily from higher service charges on deposit accounts and higher
debit card fees due to growth in the number of deposit accounts.

Noninterest expense increased $459,000 and $373,000 when comparing the
years and quarters ended June 30, 2012 and 2011, respectively. These
increases resulted primarily from expenses recognized on the defined
benefit pension plan of $178,000 and the payment of a prepayment
penalty on a term borrowing with the FHLB of $135,000 during the year
and quarter ended June 30, 2012. Also contributing to the increased
expenses was an increase in equipment and furniture expenses, service
and data processing fees, and computer software, supplies and support
expenses. These increases were partially offset by decreases in FDIC
insurance premiums of $247,000 and $10,000 when comparing the years
and quarters ended June 30, 2012 and 2011, respectively. The decrease
in FDIC insurance premiums was the result of regulatory changes in the
method of calculating the premiums.

Total assets of the Company were $590.7 million at June 30, 2012
compared to $547.5 million at June 30, 2011, an increase of $43.2
million, or 7.9%.

Securities available for sale and held to maturity totaled $233.9
million, or 39.6% of assets, at June 30, 2012, as compared to $214.3
million, or 39.1% of assets, at June 30, 2011, an increase of $19.6
million. The growth in the securities portfolio reflects the success
of the Company in attracting core deposits in excess of the growth
rate of loans.

Net loans grew by $25.7 million, or 8.5%, to $326.7 million at June
30, 2012 compared to $301.0 million at June 30, 2011. Real estate
loans increased $26.6 million, or 10.3%, between June 30, 2012 and
2011, with an $11.8 million increase in residential mortgage loans and
a $16.9 million increase in nonresidential real estate loans, which
was partially offset by a $1.5 million decrease in construction and
land loans and a $526,000 decrease in multifamily loans. Commercial
installment loans increased $2.9 million which was offset by a $2.8
million decrease in home equity loans.

Total deposits increased to $511.9 million at June 30, 2012 from
$469.9 million at June 30, 2011, an increase of $42.0 million, or
8.9%. This growth is attributable an increase in core deposits in both
retail and commercial deposits at The Bank of Greene County primarily
in our newer market areas, as well as continued growth in core
deposits at Greene County Commercial Bank.

Long-term borrowings with the Federal Home Loan Bank decreased $5.0
million to $7.0 million at June 30, 2012 as a result of the maturity
of $3.0 million and the prepayment of $2.0 million of this debt during
the year ended June 30, 2012. Overnight borrowings with the Federal
Home Loan Bank were $14.0 million at June 30, 2012 compared to $14.3
million at June 30, 2011.

Total shareholders’ equity was $52.7 million at June 30, 2012, or 8.9%
of total assets, an increase of $4.6 million from total equity of
$48.0 million at June 30, 2011.

Headquartered in Catskill, New York, the Company provides full-service
community-based banking in its twelve branch offices located in Greene,
Columbia and Albany Counties. Customers are offered 24-hour services
through ATM network systems, an automated telephone banking system and
Internet Banking through its web site at http://www.tbogc.com.

This press release contains statements about future events that
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results could differ
materially from those projected in the forward-looking statements.
Factors that might cause such a difference include, but are not limited
to, general economic conditions, changes in interest rates, regulatory
considerations, competition, technological developments, retention and
recruitment of qualified personnel, and market acceptance of the
Company’s pricing, products and services.

At or for the Year

At or for the Three

Ended June 30,

Months Ended June 30,

2012

2011

2012

2011

Dollars In thousands,

except share and per share data

Interest income

$24,341

$24,224

$5,979

$6,183

Interest expense

3,583

4,511

805

1,082

Net interest income

20,758

19,713

5,174

5,101

Provision for loan losses

1,784

1,628

347

449

Noninterest income

4,850

4,793

1,251

1,230

Noninterest expense

15,314

14,855

4,167

3,794

Income before taxes

8,510

8,023

1,911

2,088

Tax provision

2,680

2,732

568

712

Net Income

$5,830

$5,291

$1,343

$1,376

Basic EPS

$1.40

$1.28

$0.32

$0.33

Weighted average

shares outstanding

4,156,481

4,134,736

4,173,109

4,145,828

Diluted EPS

$1.39

$1.27

$0.32

$0.33

Weighted average

diluted shares outstanding

4,197,060

4,165,230

4,210,135

4,172,755

Dividends declared per share 2

$0.700

$0.900

$0.175

$0.175

Selected Financial Ratios

Return on average assets

1.04%

0.99%

0.92%

0.99%

Return on average equity

11.55%

11.45%

10.27%

11.60%

Net interest rate spread

3.72%

3.70%

3.57%

3.68%

Net interest margin

3.84%

3.85%

3.67%

3.82%

Efficiency ratio1

59.80%

60.62%

64.86%

59.93%

Non-performing assets

to total assets

1.23%

1.23%

Non-performing loans

to net loans

2.15%

2.09%

Allowance for loan losses to

non-performing loans

89.08%

80.54%

Allowance for loan losses to

total loans

1.86%

1.66%

Shareholders’ equity to total assets

8.92%

8.78%

Dividend payout ratio2

50.00%

70.31%

Book value per share

$12.59

$11.60

1 Noninterest expense divided by the sum of net
interest income and noninterest income.

2 Greene County Bancorp, MHC, the owner of 55.1% of the
shares outstanding by the Company, waived its right to receive the
dividends. No adjustment has been made to account for this waiver.
Dividends per share for the year ended June 30, 2011 include a
special dividend of $0.20 per share paid on December 15, 2010.